Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-12-06
PRESIDENTS MESSAGE.
Devoted to One Important Subject.
THE SURPLUS REVENUES
Gravity Of the Financial Situation
THE PRESIDENTS PLAN OF RELIEF.
The Tariff Laws Ought to be at Once Re-
vised and Amended, but the Manufac-
turing Interests Should not be Imperiled.

turing Interests Should not be Imperiled.
To the Congress of the United States.
You are confronted at the threshold Of your legis
lat1ve duties with a condition or the national
finances which imperatively demands immediate
and careful consideration. The amount of money
annually exacted through the operation Of the
present laws, from the industries and necessities
OF the people, largely exceeds the sum necessary
to meet the expenses OF the Government.
When We consider that the theory OF our institu-
tions guarantees to every citizen the full enjoy
ment OF all the fruits OF his industry and enter
prise, with only such deduction as may be his
share toward the careful and economical main-
tenance Of the Government which protects him,
1t is plain that the exaction of more than this is
indefensible extortion, and culpable betrayal Of
American fairness and justice. This wrong in
hicted upon those who bear the burden OF national
taxation, like other wrongs multiplies brood OF
evil consequences. The public treasury, which
should only exist as a conduit conveying the peo-
pies tribute to It's legitimate objects Of eXpendi
ture, becomes a boarding place for money need
lessly withdrawn from trade and the peoples use,
thus gripping our national energies, suspending
our country's development preventing investment
In productive enterprise threatening financial dis
turbance, and inviting schemes of public plunder
new, and 1t has more than once of late been sub
mitted to the peoples representatives in the Con-
gress, who alone can apply remedy. And yet the
situation still continues, with aggravated Incl
dents, more than ever presagtng financial convul-
sion and widespread disaster.
1t will not do to neglect this situation because
its dangers are not now palpably imminent and
apparent. They exist none the less certainly, and
await the unforeseen and unexpected occasion
hon No.
On the 3Oth day OF June, 1885, the excess Of
revenues over public expenditures after complying
act, was sl7, ,s5s, 1884; during the year ended
$500 and during the year ended June 80 1887, It
reached the sum OF 81, so, ,S4954.
The annual contributions to the sinking fund
in the aggregate to $l3S O5S, ,32094, and deducted
from the surplus as stated, were made by calling
bonds Of the Government During the six months
prior to June 30, 1887, the surplus revenue had
grown SO large by repeated accumulations and 1t
was feared the withdrawal OF this great sum OF
money needed by the people, would so afYect the
business Of the country that the sum OF
100 Of sph applied to the
cent bonds still outstanding, and which were then
payable at the option OF the Government. The
precarious condition OF financial affairs among
the people still needing relief, Immediately after
the Both day Of June 1887, the remainder OF the
three per cent bonds then outstanding, amounting
s1s s77,5OO, were called In and applied to the snk.
tsss 1Ss sSs
Treasury Department representations Of distress
in business circles not only continued but in
creased, and absolute peril seemed at hand. In
these circumstances the contribution to the sink
ing fund for the current fiscal year was at once
completed by the expenditure OF $27 6S4, ,2S35 in
the purchase OF Government bonds not yet due
bearing four and four and a-half per cent inter-
est, the premium paid thereon averaging about
twenty-four per cent for the former and eight
per cent for the latter In addition to this the
interest accruing during the current year upon
the outstanding bonded Indebtedness Of the GOv-
ernment was to some extent anticipated, and
banks selected as repositories or public money
were permitted to somewhat increase their
deposits.
ENORMOUS SURPLUS PREDICTED.
While the expedients thus employed, to release
to the people the money lying idle In the Treasury
served to avert immediate danger, our surplus
revenues have continued to accumulate, the ex-
cess for the present year amounting on the 1st day
Of December to $55,25s, 7O1.1 49, and estimated to
reach the sum OF $l13 900 900 on the Both OF June
next, at which date 1t Is expected that this sun,
added to prior accumulations, VIII swell the sur
There seems 10 be no assurance that, with such
a withdrawal from use OF the peoples circulating
medium, our business community may not in the
near fature be subjected to the same distress which
was quite lately produced from the same cause.
And while the functions OF our National Treasury
should be few and simple, and while It's best con-
ditiOn would be reached, / believe, by its entire
discOnnectiOn with private business interests, vet
when, by perversion OF It's purposes, it idly holds
money uselesSly Subtracted from the channels OF
trade, there seems TO be reason for the ciai that
some legitimate means should be devised by the
waste or extravaganza such money to its place
among the people.
II such an emergency ARISES there now exists no
Heretofore the redemption OF three per cent bonds
which were payable at the option OF the Govern
n
have all been retired and there are no bonds out
standing the paymen OF which we have the right
fund which furnishes the occasion for expenditure
in the purchase Of bonds has been already made
for the current year, so that there Is NO outlet in
that direction.
SHALL THE PURCHASE OF BONDS cONTINuRf
In the present state Of legislation the only pre-
tense Of any existing executive power to restore,
at this time, any part OF surplus revenues to
thepe0ple by its expenditure consists in the sup
position that the Secretary of the Treasury may
enter the market and purchase the bonds Of the
be agreed upon. The only provision OF law from
which such power could be derived s found in
appropriation bill passed number of years ago,
and IL is subject to the suspicion that 1t was In
tended as temporary and limited In It's application
instead OF comforting continuing discretion and
authority S ,,, No &c condition ought to exist viii ch
cial, upon his judgment Of It's necessity, to with
hold from release to the business OF the people,
III ol1 uuuoudi mduuCI, uUucy uciu III tuc lTtdS-
ury, and thus Affect at his will, the financial dtu-
alton OF the country; and If II Is deemed wise to
lodge IN the Secretary OF the Treasury the authOr
| ty IN the present juncture TO purchase bonds 1t
should be plainly vested, and provided as far as
possible with such checks and limitations as will
define this officals right and discretion, and at
the same time relieve him from undue reSpOnSt-
bility.
In considering the question Of purchasing bonds
as means OF restoring to circulation the surplus
money accommodating In the Treasury, 1t should be
borne In mind that premiums must OF course be
paid upon such purchase, that there may be large
part OF these bonds held as Investments whicn
cannot be purchased at any price, and that COM
binations among holders who are willing TO sell
may unreasonably enhance the cost Of such bonds
TO the Government.
1t has been suggested that the present bonded
debt might be refunded at less rate OF interest,"
and the difference between the old and new secur-
ty paid In cash, thus finding use for the surplus In
the Treasury. The success OF this pan IL s appar-
ent, must depend upon the v0lti0n OF the holders
OF the present bonds; and It is not entirely certain
| that the fnducement which must be offered them
would result In more financial benent TO the Gov
ernment than the purchase Of bonds. while the
| latter proposition would reduce the principal Of
the debt BY actual payment, instead Of extending
IT. -
| The proposition To depoeft the money held by